1. www.peoplesgas.com/ngv Florida Natural Gas Association September 18, 2012

2. www.peoplesgas.com/ngv Current Federal & State Incentives Proposed Incentives & Legislation Incentive Questions to Consider Presentation Overview

3. www.peoplesgas.com/ngv Federal Initiatives

4. www.peoplesgas.com/ngv Tax Credits Fuel Tax Credit – Was 50 cents per gasoline-gallon equivalent. – Expired 12/31/11. Natural Gas Vehicle Purchase Tax Credit – Credit for dedicated NGVs expired 12/31/10. Refueling Property Tax Credit – Expired 12/31/11. Electric Vehicle Purchase Tax Credit – $7,500 credit capped at 200,000 per manufacturer.

5. www.peoplesgas.com/ngv NAT GAS Act: House On April 6 th 2011, the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act of 2011 was introduced in House (HR 1380): – Would extend and expand incentives to accelerate the growth of the US NGV market Lead sponsors: – Reps. John Sullivan (R-OK), Dan Boren (D-OK), John Larson (D-CT) and Kevin Brady (R-TX) 180 current co-sponsors

6. www.peoplesgas.com/ngv NAT GAS Act: House House has not taken up the measure Two House Committees have held several hearings on NGV-related matters

7. www.peoplesgas.com/ngv NAT GAS Act: Senate Nat Gas Act Introduced in the Senate on 11/5/2011 Principal sponsors are: Sens. Robert Menendez (D-NJ), Richard Burr (R-NC) and Sen. Saxby Chambliss (R-GA) and Majority Leader Harry Reid (D-NV) Cosponsors: Sens. Joe Lieberman (I-CT) and Mark Udall (D-CO)

8. www.peoplesgas.com/ngv NAT GAS Act: Senate Senate voted on March 13 th 2012 to add NAT GAS Act to the Highway bill The vote was: 51-47. However, a 3/5 majority (60 votes) was required for passage, thus the amendment was rejected Senate Finance Committee subcommittees also have held several hearings on NGV-related matters Prospects for NAT GAS Act provisions in the Senate are now tied to possible tax extenders action.

9. www.peoplesgas.com/ngv Tax Extenders Legislation Both the House and Senate have held hearings on tax extenders legislation, but only for provisions that expired in 2011 or will expire in 2012: – Includes fuel and infrastructure credit but not vehicle credit

10. www.peoplesgas.com/ngv Tax Extenders Legislation NGVAmerica working with EDTA, NEMA and NPGA to extend the infrastructure credit. NGVAmerica currently meeting with staff to the Finance and Ways & Means Committee to discuss provisions of interest to NGVAmerica in the extenders legislation.

11. www.peoplesgas.com/ngv NAT GAS Act: Future Possible vehicles include: – Tax Extender Legislation in both the House and the Senate – Timing Uncertain – Senator Burr may offer modified version of Nat Gas Act Recommendation from the NGVAmerica’s Government Affairs committee: – Focus NGVAmerica’s efforts for remainder of the year on extending the existing federal tax incentives

12. www.peoplesgas.com/ngv NAT GAS Act: Future Recommendation from the NGVAmerica’s Government Affairs committee: – Focus NGVAmerica’s efforts for remainder of the year on extending the existing federal tax incentives – continue supporting the entire bill unless and until it really looked like we had a chance for a piece of the bill to pass.

13. www.peoplesgas.com/ngv NAT GAS Act: Future Recommendation from the NGVAmerica’s Government Affairs Committee: – Most important NAT GAS Act priority is the reestablishment and extension of the vehicle credit – The infrastructure credit could be dropped if deemed necessary

14. www.peoplesgas.com/ngv 2012 Highway Bill Provisions of interest that could be helpful to NGVs include: – Moves the Clean Fuel Formula Grant Program (Sec. 5308) into the amended (Sec 5312) RDD&D projects program at the DOT. This could provide more funding for NGV transit projects – Extends the HOV program: NGVAmerica worked with Honda, GM and ANGA to get a more comprehensive HOV program included, but that was not successful.

15. www.peoplesgas.com/ngv 2012 Highway Bill – Allows states to build natural gas refueling stations at state rest areas – Makes changes to the CMAQ program to expand the authority of the program to fund natural gas fueling stations: NGVAmerica worked with Honda, GM, ANGA to get this included – Increases the federal share when transit agencies purchase new natural gas buses from 83% to 85%

16. www.peoplesgas.com/ngv 112 th Congress: Current Situation Congress has winded down-5 days left Don’t expect much action Possibility exists for some action after the elections

17. www.peoplesgas.com/ngv Look Ahead? Lame duck session Anything extended will be very short term 1 year Allow breathing room for congress to work on comprehensive tax reform Extenders already explored, like fuel credits, have a steeper hill to climb because it essentially reestablishing an old bill

18. www.peoplesgas.com/ngv NEW RULES A new rule for light duty vehicle fuel economy and greenhouse gas emissions standards announced August 28, 2012 makes natural gas vehicles eligible for special manufacturing incentives designed to accelerate the introduction of advanced technology vehicles. The rule proposes that natural gas vehicles will receive the same level of incentives as plug-in hybrid vehicles, with a “multiplier” of 1.6 initially. Under the new rule, electric vehicles, plug in hybrid vehicles, fuel cell vehicles, and natural gas vehicles are eligible for these incentives. The rule will affect model years 2017 to 2025.

19. www.peoplesgas.com/ngv NEW RULES The proposed rule released last fall provided these incentives for electric drive technologies but not for natural gas vehicles (NGVs). The agencies cited public comments which argued that NGVs are an important enabling technology that will aid the development of fuel cell vehicles as the reason for the change. Corporate Average Fuel Economy Standards (CAFE) strongly influence automakers’ product planning. These incentives are more powerful in influencing the vehicles offered by auto manufacturers than tax incentives in most cases, because they are less subject to change.

20. www.peoplesgas.com/ngv Florida Initiatives

21. www.peoplesgas.com/ngv Florida Statute 206.877 a/k/a Alternative Fuel Decal Current Law For vehicles licensed in the state of Florida, the owners or operators of such vehicles shall, in lieu of the excise tax imposed by this part, pay an annual decal fee on each such motor vehicle – For each sale of fuel to a vehicle displaying a decal, data shall be recorded upon an invoice which includes the decal number, the motor vehicle license number, and the number of gallons placed into the motor vehicle – The seller does not pay to the state a motor fuel tax on sales to the vehicles with alternative fuel decals For vehicles licensed in other states and other vehicles which do not have the proper decals, the excise tax provided by s. 206.87 applies, assigning the same fuel tax that is paid on sales from fueling diesel vehicles per section 206.87

22. www.peoplesgas.com/ngv Issues Often CNG filling stations are automated and do not require attendants to be on premises for consumers to fuel their vehicles. The complex nature of current law, virtually requiring an attendant to be present to differentiate in-state and out-of- state vehicles and collect data on in-state vehicles is incongruent with realities of the CNG market. Current law is cumbersome and discourages expansion of the CNG infrastructure to support fleet conversion and transportation initiatives in the state of Florida. Florida Statute 206.877 a/k/a Alternative Fuel Decal

23. www.peoplesgas.com/ngv Florida Incentives High Occupancy Vehicle (HOV) Lane Exemption for ILEV and Hybrid Electric vehicles – Nay use HOV lanes at any time – No passenger limit – Must be certified and labeled/FDMV decal – Use HOV lane without paying tolls

24. www.peoplesgas.com/ngv Florida Freight Mobility & Trade Plan Approved on April 27, 2012 by signature of Governor Richard L. Scott, Florida House Bill 599 requires the Florida Department of Transportation to develop the Freight Mobility and Trade Plan. The goals for the creation of the plan are:

25. www.peoplesgas.com/ngv Increasing the flow of domestic and international trade through the state's seaports and airports Increasing the development of intermodal logistic centers in the state Increasing the development of manufacturing industries in the state Increasing the implementation of compressed natural gas (CNG), liquefied natural gas (LNG), and propane energy policies that reduce transportation costs for businesses and residents located in the sta te Florida Freight Mobility & Trade Plan

26. www.peoplesgas.com/ngv “The Florida Natural Gas Vehicle Coalition supports financial incentives for the purchase of natural gas vehicles, including Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG). “

27. www.peoplesgas.com/ngv $1 billion in economic output $300 million in additional wages Over 10,000 new jobs in Florida

28. www.peoplesgas.com/ngv Members include CNG commercial end-users – Beer distributors – Freight delivery companies – Vehicle manufacturers – Large-format retailers

29. www.peoplesgas.com/ngv

30. It’s going to happen, and you don’t have to have to have to Washington to do it, thank God” “You don’t have to have a tax credit; it’s going to happen” “ I will not go back to Washington again unless it’s for a social event” T. Boone Pickens, Politico, August 29,2012 One Man’s View

31. www.peoplesgas.com/ngv l Can my project work in lieu of incentives? What can my company provide in terms of incentives? What other resources can my company bring to the table to leverage CNG projects? What can my company do to educate our legislators on Florida CNG needs? Incentive Questions to Consider

32. www.peoplesgas.com/ngv